alkemyst
No Lifer
- Feb 13, 2001
- 83,769
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Originally posted by: kthroyer
Hey alkemyst,
Sounds like you are in the mortgage business. Could you answer a quick question for me?
My home's value right now is about $220,000 (conservatively) The mortgage principal is at $160000 at 6%, but I have a home equity loan also with a balance of $30,000. If I just wanted to refi the mortgage, and continue paying off the HE Loan, do you feel that I would still need to pay PMI or put money down?
I know the two loans together are more than 80% of the home's value, but the $160,000 is around 72%.
Also my credit score is over 800.
Thanks.
You will need PMI more than likely, but you should be able to refi.
Most people's percieved credit scores (FICO and the like) are very different than the tri-merge a bank will pull.
Also score is just a starting point. Many people have very high credit scores but nothing that backs up their ability/proof to repay debts.
Many mortgage companies want to see some older tradelines (2+ years at least with decent limits)...people who ended up in mortgages over the last 3 years or so had a very easy and unrealistic experience to what 'getting a mortgage' can be like.
good luck though...they will do an appraisal...check zillow.com for homes in your area to see if you are really being conservative. I know some that have really been hit hard thinking they were in the ballpark or even low balling themselves to find out they were actually over-estimating by 20% or more.
I bought a modest house last year. If I wrote a check for $90k, I'd still need PMI to refinance.